NLC Demands 50% Access to Pension Savings
…Slams PenCom Board Vacuum
By Patience Ikpeme
The Nigerian Labour Congress (NLC) has called for a massive increase in the accessible portion of the Retirement Savings Account (RSA) balance, proposing to raise the threshold from 25% to 50% to help workers fund critical needs like agriculture, education, and healthcare amid current economic realities.
The demand was made by NLC President Comrade Joe Ajaero during a roundtable discussion with the management of the National Pension Commission (PenCom), where he also castigated the Federal Government’s failure to fully constitute the PenCom Governing Board.
Comrade Ajaero expressed grave concerns over the continuous failure to fully constitute the PenCom Board, describing the situation as an “aberration” that threatens the integrity of the Contributory Pension Scheme (CPS).
The NLC President argued that while a Chairman is currently in place, the absence of a complete, functional board hampers strategic oversight, delays critical decisions, and undermines the proper governance structure of such a vital institution.
Comrade Ajaero said: “Congress is deeply concerned about the continued non constitution of the full board of the National Pension Commission… We ask, in the absence of this board, how do we ensure the integrity of the Commission’s actions until the board is in place?”
The NLC also made demands for better worker benefits and accountability. Firstly, the NLC urged PenCom to leverage technology to significantly reduce the long processing time for retirees to access their entitlements, demanding payments “within weeks, not months,” after retirement.
Secondly, they proposed a formal establishment of a Standing NLC-PenCom Committee to meet quarterly to proactively address workers’ grievances. Thirdly, they called for immediate regulatory action against ineffective PFAs and defaulting employers, including publishing the names of non-compliant employers and applying stiffer sanctions.
In addition, Comrade Ajaero also voiced concern over the proposed amendments to the Pension Reform Act 2014, stating that workers were not informed. “This is the last one we are trying to roll back, and the scheme is for the workers. And we don’t know that you are rolling back. So hold on that roll, roll back,” he said.
In her address, PenCom Director General Ms. Omolola Oloworaran welcomed the NLC, calling the relationship an “indispensable one,” especially as the Commission prepares to intensify its regulatory activities.
“There will be no PenCom without labour and we need labour to achieve our goals. And as we go into full-drive enforcement mode, labour is a reliable partner that we want to count on,” the DG said.
Ms. Oloworaran described the CPS as the “most transformative social reform” Nigeria has ever seen, one that has restored confidence and dignity in retirement. She stated the discussion theme was “consolidating the gains of the Contributory Pensions Team through collaboration.”
The DG noted that PenCom would be driving several key reforms, including the Pension Revolution 2.0—a bold initiative aimed at expanding coverage, strengthening regulation, and enhancing service delivery. Discussion also centered on the revised Regulation of Investment of Pension Assets, designed to preserve safety and optimize returns for contributors.
The DG further noted that the micro-pension scheme has been renamed the “Personal Pension Plan” to appeal to all Nigerians, and that PenCom would share updates on the proposed amendments to the Pension Reform Act 2014, explicitly requesting the NLC’s input.
Ms. Oloworaran concluded: “The CPS can only remain strong when Nigerian workers believe in it, and how better to improve trust in the system than partnering with the Nigerian Labour Congress, which is closer to the people and who champion the cause of the people as well.”
